The myth of the risk-tolerant entrepreneur

Strategic Organization

Volumn 2, Issue 4, 2004, Pages 331-355

  Hongwei, H ^a   Ruef, Martin ^b  

^a STANFORD UNIVERSITY   (United States)

^b PRINCETON UNIVERSITY   (United States)

Author keywords

entrepreneurs; pecuniary and non pecuniary motivation; risk propensity

Indexed keywords

EID: 84993740374     PISSN: 14761270     EISSN: None     Source Type: Journal    
DOI: 10.1177/1476127004047617     Document Type: Article

References (45)

1. Atkinson, J. W. (1957) ‘Motivational Determinants of Risk-taking Behavior’, Psychological Review 64: 359-372.
2. Bazerman, M. H. (1990) Judgement in Managerial Decision-Making, 2nd edn. New York: Wiley.
3. Bearse, P. J. (1982) ‘A Study of Entrepreneurship by Region and SMSA Size’, in K. Vesper (ed.) Frontier of Entrepreneurial Research, pp. 78-112. Wellesley, MA: Babson College.
4. Brockhaus, R. H. (1980) ‘Risk-taking Propensity of Entrepreneurs’, Proceedings of the Academy of Management, pp. 457-460.
5. Brockhaus, R. H. (1982) ‘The Psychology of the Entrepreneur’, in C. Kent, D. Sexton and K. Vesper (eds), Encyclopedia of Entrepreneurship, pp. 39-57. Englewood Cliffs, NJ: Prentice-Hall.
6. Cantillon, R. (1755 [1979]) Essai sur la nature du commerce en général, ed. T. Tsuda. Tokyo: Kinokuya.
7. Carter, N. M., Gartner, W. B. and Shaver, K. G. (2004) ‘Career Reasons’, in W. B. Gartner, K. G. Shaver, N. M. Carter and P. D. Reynolds (eds) Handbook of Entrepreneurial Dynamics: The Process of Business Creation in Contemporary America, pp. 142-152. Thousand Oaks, CA: Sage.
8. Denrell, J. and March, J. G. (2001) ‘Adaptation As Information Restriction: the Hot Stove Effect’, Organization Science 12(5): 523-538.
9. Diamond, P. (1984) A Search-Equilibrium Approach to the Micro Foundations of Macroeconomics. Cambridge, MA: MIT Press.
10. Dickinson, R. (1981) ‘Business Failure Rate’, American Journal of Small Business 6(2) (Oct.-Dec.): 17-25.
11. Donkers, B., Melenberg, B. and Soest, A. V. (2001) ‘Estimating Risk Attitudes Using Lotteries: A Large Sample Approach’, The Journal of Risk and Uncertainty 22(2): 165-195.
12. Friedman, M. and Savage, L. J. (1948) ‘The Utility Analysis of Choice Involving Risk’, Journal of Political Economy 56(4): 279-304.
13. Gasse, Y. (1982) ‘Elaborations on the Psychology of the Entrepreneur’, in C. Kent, D. Sexton and K. Vesper (eds) Encyclopedia of Entrepreneurship, pp. 57-71. Englewood Cliffs, NJ: Prentice-Hall.
14. Gentry, W. M. and Hubbard, G. R. (2001) ‘Entrepreneurship and Household Saving’, Working Paper no. 7894. Cambridge, MA: National Bureau of Economic Research.
15. Greenberger, D. B. and Sexton, D. L. (1988) ‘An Interactive Model of New Venture Initiation’, Journal of Small Business Management 26(3): 1-7.
16. Halaby, C. N. (2003) ‘Where Job Values Come From: Family and Schooling Background, Cognitive Ability, and Gender’, American Sociological Review 68 (April): 251-278.
17. Hamilton, B. H. (2000) ‘Does Entrepreneurship Pay? An Empirical Analysis of the Returns to Self-Employment’, Journal of Political Economy 108(3): 604-631.
18. Heaton, J. and Lucas, D. (2001) ‘Capital Structure, Hurdle Rates, and Portfolio Choice-Interactions in An Entrepreneurial Firm’, Working Paper, Graduate School of Business, University of Chicago.
19. Jackson, D. N., Hourany, L. and Vidmar, N. J. (1972) ‘A Four Dimensional Interpretation of Risk-taking’, Journal of Personality and Social Psychology 40: 433-501.
20. Kahneman, D. and Tversky, A. (1972) ‘Subjective Probability: A Judgment of Representativeness’, Cognitive Psychology 3: 430-454.
21. Kilby, P. (1971) Entrepreneurship and Economic Development. New York: Houghton Mifflin.
22. Kilhlstrom, R. and Laffront, J. J. (1979) ‘A General Equilibrium Entrepreneurial Theory of New Firm Formation Based on Risk Aversion’, Journal of Political Economy 87: 304-316.
23. Kim, P. H., Aldrich, H. E. and Keister, L. A. (2004) ‘Household Income and Net Worth’, in W. B. Gartner, K. G. Shaver, N. M. Carter and P. D. Reynolds (eds) Handbook of Entrepreneurial Dynamics: The Process of Business Creation in Contemporary America, pp. 49-61. Thousand Oaks, CA: Sage.
24. Knight, F.H. (1921) Risk, Uncertainty, and Profit. New York: Houghton Mifflin.
25. Luenberger, D. (1997) Investment Science. New York: Oxford University Press.
26. McClelland, D. C. (1961) The Achieving Society. Princeton, NJ: van Nostrand.
27. March, J. G. (1996) ‘Learning to Be Risk-averse’, Psychological Review 103(2): 309-319.
28. March, J. G. and Shapira, Z. (1987) ‘Managerial Perspectives on Risk and Risk-taking’, Management Science 33: 1404-1418.
29. Marshall, A. (1890 / 1930) Principles of Economics. London: Macmillan.
30. Miner, A. S. and Haunschild, P. R. (1995) ‘Population Level Learning’, Research in Organizational Behavior 17: 115-166.
31. Miner, J. B. and Raju, N. S. (2004) ‘Risk Propensity Differences Between Managers and Entrepreneurs and Between Low- and High-Growth Entrepreneurs: A Reply in a More Conservative Vein’, Journal of Applied Psychology 89(1): 3-13.
32. Moskowitz, T. J. and Vissing-Jorgensen, A. (2002) ‘The Returns to Entrepreneurial Investment: A Private Equity Premium Puzzle?’, American Economic Review 92(4): 745-778.
33. Pennings, J. M. E. and Smidts, A. (2000) ‘Assessing the Construct Validity of Risk Attitude’, Management Science 46(10): 1337-1348.
34. Perry, C. (1990) ‘After Further Sightings of the Heffalump’, Journal of Managerial Psychology 5: 22-31.
35. Pinfold, J. (2001) ‘The Expectations of New Business Founders’, Journal of Small Business Management 39: 279-285.
36. Reynolds, P. D. (2000) ‘National Panel Study of US Business Startups: Background and Methodology’, Databases for the Study of Entrepreneurship 4: 153-227.
37. Ross. J. and Staw, B. (1986) ‘Expo 1986: An Escalation Prototype’, Administrative Science Quarterly 31: 274-297.
38. Ruef, M. (2003) ‘A Sociological Perspective on Strategic Organization’, Strategic Organization 1(2): 241-251.
39. Say, J. B. (1803 [1971]) A Treatise on Political Economy, or the Production, Distribution and Consumption of Wealth. New York: Augustus M. Kelley.
40. Sexton, D. L. and Bowman, N. B. (1983) ‘Comparative Entrepreneurship Characteristics of Students: Preliminary Results’, in J. Hornaday, J. Timmons and K. Vesper (eds) Frontiers of Entrepreneurship Research, pp. 213-225. Wellesley, MA: Babson College.
41. Sexton, D. L. and Bowman, N. B. (1984) ‘Personality Inventory for Potential Entrepreneurs: Evaluation of a Modified JPI/PRF-E Test Instrument’, in J. Hornaday, F. Tarpley, J. Timmons and K. Vesper (eds) Frontiers of Entrepreneurship Research, pp. 513-528. Wellesley, MA: Babson College.
42. Sexton, D. L. and Bowman, N. B. (1985) ‘The Entrepreneur: A Capable Executive And More’, Journal of Business Venturing 1: 129-140.
43. Sorensen, J. and Sorenson, O. (2003) ‘From Conception to Birth: Opportunity Perception and Resource Mobilization in Entrepreneurship’, Advances in Strategic Management 20: 89-117.
44. Stewart, W. H. and Roth, P. (2001) ‘Risk Propensity Differences Between Entrepreneurs and Managers: A Meta-Analytic Review’, Journal of Applied Psychology 86(1): 145-153.
45. Weber, E. U., Blais, A. and Betz, N. E. (2002) ‘A Domain-specific Risk-attitude Scale: Measuring Risk Perceptions and Risk Behaviors’, Journal of Behavioral Decision-making 15: 263-290.